Balance transfer lengths continue to shorten - shift NOW if paying credit card interest

The balance transfer market is changing. In spring last year, the longest 0% length topped  43 months - meaning those who took it out got more than three and a half years to clear their debt without paying interest. Eighteen months on, and the longest card now offers just 33 months at 0% and we're starting to see top deals getting pulled at a much faster rate.

During the last month alone, Tesco pulled its top 33 month 0% offering, while Lloyds and Halifax both gave their 34 month 0% cards the chop. In September, Tesco discontinued its 36 month 0% card, while MBNA reduced its 36 month 0% period.

Meanwhile just last Friday, HSBC ended its table-topping £25 cashback deal on its 32 month card and it's unlikely we'll see a similar offer return in the near future.

For a full rundown of how balance transfers work and all our current top picks, see our  guide.

How have the rates changed?

In November 2017, the longest 0% card on offer was up to 39 months. While this was a significant drop from the 'all time high' of 43 months offered in spring that year, there were still several providers vying for top spot back then - with Tesco Bank, Barclaycard and Virgin heavily involved in the balance transfer war.

Right now, the longest 0% card from MBNA offers just 33 months 0% for a 1.99% fee, while the next-best card from HSBC offers 32 months with a 1.4% fee to transfer your debt.

In terms of cards without a fee, Sainsbury's Bank topped the pile a year ago, offering a generous 28 month 0% period, though it has since dropped this period to 26 months 0%. The longest no-fee card is now 27 months 0% from Santander.

For more information, see our Balance Transfer guide.

What is a balance transfer?

A balance transfer is where you get a new card that pays off existing debt on other credit and store cards, so you owe it instead, but at 0%. This means more of your repayments go to reducing the debt, rather than paying interest, so you clear it quicker.

Most balance transfer cards will charge a small fee when you make the transfer, so always go for the card with the lowest fee within the time period – eg, 33 months – that you know you can pay it back in. If in doubt, go long, even with a bigger fee.

For most with ongoing debt the challenge is being accepted, so use our Balance Transfer Eligibility Calculator to check your chances of being accepted for a card without affecting your credit score. It is worth knowing that our calculator doesn't currently include MBNA's 33 month offering, though it does include the majority of cards in our best buys. Plus, some cards offer pre-approval, meaning you can use our eligibility calculator to see if you'll definitely be accepted.

Why are 0% balance transfer deals getting shorter?

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MAY HAVE TO BE INTERNAL?